SPECIAL ADVERTISING SECTION

ASIA TRADE AND LOGISTICS

By Matt Smith

United States Gulf Coast ports are expanding their share of Asian seaborne imports , driven by shippers rerouting cargo for locational convenience and in response to congestion at alternative destinations .

In May , US Gulf Coast ports received 8.6 % of US seaborne imports from Asia — a steady climb over the last six years , resulting in more than double the region ’ s share since April 2018 when the figure was 3.6 %, according to PIERS , a sister product of the Journal of Commerce by S & P Global .

Over the same period , total Asian imports that went to West Coast ports fell from 67.4 % to 57.4 % and those to East Coast ports rose to 34.1 % from 29.0 %.

One factor behind the expansion of Asian import share for Gulf and East coasts is the increasing sourcing shift from China to South Asia being made by American companies .

This trend is part of the decadelong “ China plus one ” supply chain strategy in which companies , especially those from the US , have sought to reduce their reliance on sourcing goods from Chinese manufacturers amid heightening tensions between the world ’ s two largest economies .

Historically , goods from South Asia tend to be shipped through the Suez Canal , rather than across the Pacific Ocean , said the American Association of Port Authorities , although Yemeni disruption of shipping through the Red Sea , in response to the Israel-Hamas war , has spurred the rerouting of many vessels around southern Africa .

Port Tampa Bay , Florida ’ s largest port , has rapidly established itself as an alternative destination for companies facing supply chain bottlenecks elsewhere .

Tampa continues to post double-digit annual growth in containerized imports ,

www . joc . com steel and other general commodities as well as petroleum products , citrus juices and granite among bulk cargoes , explained Raul Alfonso , executive vice president and chief commercial officer of Port Tampa Bay .

“ For companies along the Tampa / Orlando I-4 corridor , the demand for same-day service , tighter delivery windows and shorter lead times are driving this shift . Drivers can now make more , shorter round-trip deliveries per day from Port Tampa Bay ,” said Alfonso .

Port Tampa Bay launched direct Asia services in 2019 . Its overall container volume has increased 143 % since then , with Asia being its biggest trade lane .

The port ’ s total container volume rose 28 % in the first six months of 2024 versus

the prior-year period , and its main ocean carrier partners for Asia trade include Maersk , Cosco , Zim Integrated Shipping Services , Mediterranean Shipping Co ., CMA CGM , Evergreen Marine and OOCL .

“ Our customers run the gamut from furniture and appliances to retail and e-commerce , home improvement , building materials , and food and beverage products ,” Alfonso said .

The COVID-19 pandemic exposed previously unrecognized weaknesses in US supply chains .

“ Congestion and delays at traditional ports created a huge opportunity for new , emerging ports , like Tampa , where ships could easily berth on arrival without delays and [ with ] fast truck turnarounds at the gate ,” Alfonso said .

“ Retailers and other BCOs then discovered there were significant drayage cost savings by routing via Port Tampa Bay because of our close proximity to distribution centers , allowing for multiple round-trip deliveries per day , which they could not do from ports they had previously been using .”

To meet growing customer demand , Port Tampa Bay has increased its fleet of ship-to-shore gantry cranes from two to five and recently opened an expanded , state-of-the-art gate complex with six inbound and three outbound lanes . Additionally , the container terminal ’ s footprint will soon span 100 acres ; construction of a third deepwater berth and a new on-dock , rail-served transload warehouse will begin imminently .

“ Congestion and delays at traditional ports created a huge opportunity for new , emerging ports .”

Tampa ’ s upgrades come at a time when shippers are becoming accustomed to “ permanent volatility ,” according to the Council of Supply Chain Management Professionals ’ ( CSCMP ’ s ) annual State of Logistics report , published in June .

Various disruptions , such as labor unrest at US ports and activity in the Red Sea , have roiled shippers . The rerouting of vessels around southern Africa has raised rates on other trade lanes , not only those that previously traversed the Suez Canal .

“ Especially among companies with aggressive growth trajectories , there is a growing trend toward a wholesale reconsideration of what distribution networks are for and how they should be designed ,” noted the CSCMP report .

As trade rebounds toward the peaks of

July 29 , 2024 | Journal of Commerce 37